‘Money Mule’: Canyon Lake homebuilder nearly cost a Fortune 500 company millions

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A Canyon Lake homebuilder is at the center of an apparent scam that nearly cost a Wall Street behemoth millions.

The Secret Service alleges Howard J. Nelms received $5 million from $12.7 million that Kohlberg Kravis Roberts & Co. lost in an email spoofing scam.

KKR has not publicly disclosed that it lost the money, but court documents reviewed by the San Antonio Express-News show the firm sent the funds in two wire transfers after getting spoofing emails in March 2022. Last week, the U.S. Attorney’s Office in San Antonio filed a forfeiture lawsuit against the $1.6 million to see who else, besides KKR, might file claims for the money.

“Most of them believe they are doing a legitimate job. They don’t know they are doing something illegal,” said Dan Morales, acting special agent in charge of the Secret Service in San Antonio. “That’s how the crooks wash their money.” KKR sent nearly $5.8 million to a Chase Bank account on March 18, 2022. Twelve days later, KKR transferred $6.9 million to the same bank account.

 

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Canyon Lake homebuilder called a ‘money mule’ in scheme that nearly cost a Fortune 500 company millionsNew York-based Kohlberg Kravis Roberts & Co. is one of the world’s largest private equity firms.
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